Estimate the risk natural default rate each year


The 1 year and 2 year asset swap spreads for a company are 150 and 210 basis points respectively. The underlying bonds provide a coupon of 8% per year payable annually. Risk free rate are 4.5 for all maturities. Estimate the risk natural default rate each year.

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Accounting Basics: Estimate the risk natural default rate each year
Reference No:- TGS0705240

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